This presentation covers some of the basic requirements for doing a 1031 exchange.
How do you save money in taxes and compound and build wealth over time?
What can you exchange?
What are the time-frames of deadlines?
How do you get started?
(c) 2005-2009 Jeff Peterson
19. Time frames Day 0 Day 180 Day 1 45 Day Identification Period Maximum 135 Days remaining in the Exchange Period 180 Day Exchange Period Day of closing
20. XII. The 180-Day Exchange Time Period May Not Be 180 Days Long The replacement property must be received within the earlier of: (i) 180 days after the closing of the relinquished property; or (ii) the due date for your tax return for the taxable year in which the transfer of the relinquished property occurs, including extensions . Day 0 Day 180 Day 1 180 Day Exchange Period The replacement property must be received within the earlier of: (i) 180 days after the closing of the relinquished property; or (ii) the due date for your tax return for the taxable year in which the transfer of the relinquished property occurs, including extensions . Due date for tax return
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22. Consequences of Conducting a Partial Exchange and Receiving a Portion of the Proceeds or Other Property If you receive money or non like-kind property (“boot”) in an exchange on which you realize a gain, you have a partially nontaxable exchange. You are taxed “dollar for dollar” on the gain you realize, but only to the extent of the money and the fair market value of the non like-kind property that you receive.
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38. §121 REGULATIONS REGARDING “PRINCIPAL RESIDENCE” Date that Replacement Property was received to complete 1031 exchange Rent Replacement Property for two or three years * Live in the Replacement Property as your principal residence for at least two years Hold the Replacement Property for at least five years Sell Your Now Principal Residence and Exclude 250K or 500K * Note: §121 exclusion does not apply to gain attributable to depreciation deductions for periods after May 6, 1997, claimed with respect to the business or investment portion of a residence. Five year Time line